How to Get Help With Filing for Bankruptcy
Are you ready to file for bankruptcy but you don't know where to start? You probably need help with your bankruptcy. DoNotPay is one option.
Knowing that you are in overwhelming debt is one thing. Being prepared for the bankruptcy process is another. There are steps you can start to take to get things ready for your bankruptcy petition. When you get into the bankruptcy process, you will need to be sure that you are paying what you owe, and that there are no errors on your credit report. Your very first step needs to be to obtain a copy of your credit report. Look carefully at everything on there. Is all your information correct? Do you recognize the creditors and amounts listed? If there are charges, creditors, or information that is unfamiliar to you, challenge those items. The worst thing that can happen is that you receive a verification of debt from them proving that it is real. In many cases, your challenge will be correct and those items will be removed from your report.
Now that you know what you owe according to your credit report, and what you bring in, gather up all of your other bills, and make an accounting of the total amount due on each, monthly payments you have been making, and note what the minimum payment would be. List all of your assets which will include any real estate, cars, jewelry, and anything else of value such as TVs, gaming systems, and computers. Make a note as to what each is used for. For example, if your computer is used to work from home, note that. Assets that are used for those purposes are things that you should be allowed to keep. List what you have in savings. Keep your 401K completely separate from your assets. Bankruptcy courts usually allow you to hold on to your 401K, but you cannot touch it.
Assemble your paystubs, bank statements, and tax returns. Add up any cash you have on hand. This information will be given to the trustee for verification and assessment of what can be paid to your creditors.
Bankruptcy courts will usually allow you to keep your home furnishings and basic necessities. It is those assets that would be deemed to be luxury items that will be sold with the proceeds divided up among your creditors. You should also be able to keep your car, within reason. Usually, your state has guidelines as to the value of a vehicle you will be allowed to keep following a bankruptcy. You need to be honest with the court trustee. Do not give away money or assets or attempt to hide them in any way to keep them from the bankruptcy courts. To do so is fraud, and if you are caught, your case will be dismissed and your creditors can continue to come after you. You could also face charges.
The following sections are other things you need to know to help you with your bankruptcy.
Types of Bankruptcy
There are two types of personal bankruptcy: Chapter 7 and Chapter 13.
|Types Of Bankruptcy:||Advantages:|
|Chapter 7||A Chapter 7 bankruptcy is a straight bankruptcy, and what most people picture a bankruptcy to be. In a Chapter 7 bankruptcy, you are assigned a court trustee who will look at the amount of money you are bringing in and the amount of money you owe, as well as the value of all of your assets. The trustee may order you to sell some of your assets so that the proceeds can be paid to your creditors. You will be required to take a credit course at the beginning of the bankruptcy process. If the court is satisfied that you cannot afford your debt, they will discharge your debt and give you a clean financial state to build on. A Chapter 7 bankruptcy will stay on your credit report for ten years. If necessary, you can file for another Chapter 7 bankruptcy after 8 years.|
|Chapter 13||A Chapter 13 bankruptcy involves a restructuring of payment plans to your creditors. This type of bankruptcy will allow you to keep most of your assets. Once you come up with a payment plan, you will need to keep to that plan for a period of three to five years. At the end of that time, any leftover moneys owed will be discharged so that you have a clean finanicial slate to work with. Chapter 13 bankruptcy will remain on your credit report for 8 years. You can file for another Chapter thirteen after only a few years, or you can file for Chapter 7 after six years.|
What Happens With Your Creditors When You File?
Enjoy the quiet! The moment you petition the courts and begin the process, a stay is placed on your collections and garnishments and you are off-limits.
You will need to inform your creditors that you have filed your petition. By law, your wages cannot be garnished, all debt collection activity must cease, and they can no longer harass you or your friends and family by phone, mail, or email. Some of your creditors might even try to challenge your bankruptcy, but that will be between them and the courts.
Is Bankruptcy Right For Me?
To determine if bankruptcy is the right choice for you, analyze your current situation.
Do you find yourself in a position where you cannot meet all of your financial obligations each month no matter how hard you try? Are your wages being garnished? Do you have pending judgments against you from collection agencies? If you answer yes to these questions, you may be a candidate for bankruptcy.
However, you also need to answer these questions as well: Are you ready to potentially lose your home, your car, or other assets? Can you abide by the rules set out by the court trustee? Are you prepared to change your financial ways? Do you realize that you cannot hide things from the court or just give your possessions away so that they cannot be sold off? To move forward into bankruptcy in a healthy manner, you need to be prepared for what will happen during the process. If your answer is still a yes, then it is time to file your petition with the courts.
What You Cannot Do During the Bankruptcy Process
If you try to deceive the courts during the process of filing for bankruptcy, your petition will be denied and you might even be prosecuted!
There are a number of actions that will backfire should you try any of them as it is considered defrauding the courts.
- Never lie about your assets to the court.
- Do not try and hide assets or give them away to avoid losing them.
- Do not run up your credit card debt.
- Do not take on new debt,
- Do not raid your 401K
- Do not attempt to transfer property to your family and friends.
- Do not make any unusual bank deposits.
- Do not initiate any unnecessary lawsuits.
- Do not purchase anything that is not an absolute necessity on credit.
Options for Filing For Bankruptcy
While filing on your own is always possible, it can be easy to miss important parts of the paperwork or make other mistakes.
You do have a few choices when it comes to the actual filing for bankruptcy:
- You can file on your own without representation. The forms alone can be daunting, and even the slightest error can get your case thrown out.
- Get a bankruptcy lawyer and pay them to file for you. This is a common choice, but one that can cost you money you already don't have.
- Let DoNotPay file for you. With DoNotPay, you are a click of a button away from getting started.
File for Bankruptcy Using DoNotPay
When you turn to DoNotPay to file for bankruptcy, you are making your best choice.
If you want to file for bankruptcy using DoNotPay, follow these 5 easy steps:
- Search for File for Bankruptcy on DoNotPay.
- Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.
- Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.
- DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.
- Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.
Once complete, the court will give you:
- Your bankruptcy case number
- The name of your bankruptcy trustee
- The date, time, and location of your meeting with your trustee
At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. Your trustee will then contact you for further financial documents you will need to provide. Make sure to attend your meeting as well as complete the post-filing bankruptcy debtors course!
Why Use DoNotPay to File For Bankruptcy?
When you use DoNotPay, you know it is going to be done right. DoNotPay is:
- Fast. In the time it would take you to read through the bankruptcy application, DoNotPay has already completed it.
- Easy. Everything with DoNotPay starts with the click of a button. What could be easier?
- Successful. You know when DoNotPay does it, every form is filled out right.
DoNotPay Offers Solutions to Problems in Every Area
DoNotPay can help you with more than just your bankruptcy. For example:
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The possibilities are endless when it comes to what DoNotPay can do for you.
What Else Can DoNotPay Do?
Here are just a few of the things that DoNotPay can help you with:
- Breach of contract
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Visit DoNotPay today and see what you can get started with the click of a button.